You have recently been appointed as the sales representative for BE Electronics, Inc. BE Electronics provides electric switches to one of the largest appliance manufacturer's in the country. As the newly appointed sales representative, you will work closely with the engineers on the design of the switches. You will also be responsible for ensuring that inventory levels are adequate to meet the needs of the appliance manufacturer.
In the past, those who have been appointed as sales representative received a promotion and a pay increase within eight months. This appointment is viewed as the first step to greater prominence within the organization. The sales representative is also essential to maintaining the relationship between BE Electronics and the appliance manufacturer. Sales to the appliance manufacturer accounts for more than 50% of BE Electronics' revenue.
During a tour of the factory, you notice that the switches being supplied to the appliance manufacturer are not the best available switches at the lowest cost. The switches are marginal and only last half as long as others which are currently available on the market. The factory has an ample supply of the switches, which would generate sales for at least another year.
REQUIRED:
Discuss the ethical implications of the above scenario. Below are questions that may help guide your discussion. The questions are a guide (a sentence or two answering each question is insufficient). You should provide a well-organized thoughtful discussion of the ethical situation.
What dilemma does the sales representative face?
Who are the potential stakeholders and how might they be affected by the decision of the sales representative?
What choices does the sales representative have? Evaluate the choices, i.e. who benefits or who is hurt by the choice(s).
What action would you recommend? What would you tell the boss?
What should the company do going forward?